TIDMALBA
RNS Number : 8670Y
Alba Mineral Resources PLC
24 August 2018
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ALBA MINERAL RESOURCES PLC
HALF-YEARLY REPORT
The Board of Directors of Alba Mineral Resources plc (the
"Company" or "Alba"), the diversified mineral exploration company,
is pleased to report the Company's interim results for the six
months ended 31 May 2018. They incorporate the results of its
subsidiary companies Aurum Mineral Resources Limited ("AMR"),
Mauritania Ventures Limited ("MVL"), Obsidian Mining Limited
("OML"), White Eagle Resources Limited ("WERL"), White Fox
Resources Limited ("WFRL") and Dragonfire Mining Limited ("DML")
(together the "Subsidiary Companies", collectively with Alba, the
"Group").
CHAIRMAN'S STATEMENT
During the six months to 31 May 2018, we have made significant
progress across our portfolio of mining projects and oil & gas
investments.
REVIEW OF ACTIVITIES
1) Horse Hill and Brockham (Oil & Gas, Surrey, United
Kingdom)
At Horse Hill, the oil & gas project in the Weald Basin in
which Alba is the second largest participant with an 18.1 per cent
interest in the Horse Hill Developments Limited ("HHDL") funding
consortium, significant progress was made during the period towards
obtaining the remaining regulatory approvals for the proposed 150
day extended well test ("EWT") programme. With all planning
conditions satisfied and permission granted by the Oil & Gas
Authority ("OGA"), EWT operations commenced in late June. As the
short flow test campaign in 2016 established commercially viable
initial flow rates for each of the Portland sandstone and the
Kimmeridge limestone zones 3 and 4, the EWT's primary objective is
to confirm that the wellbore is connected to a commercially viable
oil volume within one or more of these three zones. Initial results
from the testing of the Portland have been positive.
Meanwhile, at Brockham, also in the Weald Basin, the oil field
in which Alba has a 5 per cent participating interest, in March we
confirmed that the operator, Angus Energy, had resumed continuous
production from the Portland Reservoir at the Brockham no. 2 well.
Furthermore, as announced earlier this month, planning approval was
granted for the appraisal of the Brockham no. 4 side-track well. We
look forward to operations commencing in earnest at Brockham, where
testing of the Brockham no. 4 side-track will target some of the
same Kimmeridge zones as are found at Horse Hill.
2) Clogau Gold Mine (North Wales, United Kingdom)
Last December we announced that we had acquired a 49 per cent
interest in Gold Mines of Wales Limited ("GMOW"), the owner of the
Clogau Gold Project situated within the Dolgellau Gold Belt in
North Wales (the "Clogau Project"). The Clogau Project comprises
the Clogau Gold Mine and includes a large number of highly
prospective gold targets and former gold workings within a total
option area of 107 km(2).
The Dolgellau Gold Belt has produced about 131,000 oz of gold,
by far the most of any region within the United Kingdom. Most of
this gold (81,000 oz) has been exploited from the historic
Clogau-St David's mine that lies within the Clogau Project area.
Alba's review of the Clogau Project concluded that there is high
potential to find unworked veins containing gold mineralisation of
similar grade to that known in historic mines in the area.
Alba's objectives in investing in the Clogau Project are
two-fold: to bring the historic Clogau Gold Mine back into
production and at the same time to make a push into regional gold
exploration.
Post Period End Update
Post period end, in July we announced that we had entered into
an agreement to acquire a further 41 per cent of GMOW, to bring our
holding to 90 per cent. As announced on 24 August 2018, we have now
completed that acquisition.
Exploration has now commenced at the Clogau-St David's gold
project.
Key points:
-- Alba's field programme is the first ever concerted modern
exploration campaign conducted on the Dolgellau Gold Belt since the
first gold discovery there in 1853.
-- Geochemical soil sampling has commenced across the Clogau-St
David's mine area and will be followed by electromagnetic and
magnetic geophysical surveys, with the objective of defining new
gold targets within the existing mine area.
-- The results obtained will also be used to determine the most
suitable exploration techniques to then be rolled out to the
highest priority regional gold targets identified within the 107
km(2) licence area.
-- Alba believes that that there is the potential to find
unworked veins containing gold mineralisation of similar grade to
that known in historic mines in the area.
-- Baseline environmental studies are being undertaken at the
location of the historic Clogau gold mine itself, a key step in the
re-permitting process for re-opening the mine.
A team from SRK Exploration Services has mobilised to site to
begin a soil sampling and geophysical programme over the existing
mine area. This work has two objectives:
- to assess the mineralisation fingerprint over a known target
with the results being used to guide exploration over multiple
regional targets within the licence; and
- to seek to identify new gold targets within the mine area.
This exploration being undertaken by Alba, in conjunction with
Gold Mines of Wales Limited, utilises modern day exploration
techniques and is, to Alba's knowledge, the first exploration
programme of its kind that has ever been undertaken on the 107
km(2) licence area.
Aside from breaking new ground in exploring the wider Dolgellau
Gold Belt, Alba's principal objective remains the reopening of the
Clogau mine. With this in mind, the appointed consultants are in
the process of undertaking certain baseline environmental studies
which are an essential part of the re-permitting process involved
in the reopening of the mine.
The Project includes numerous historical gold mines, including
Cefn-Coch, Cesailgwm-Bach, Clogau-St David's, Garth-Gell, Old
Clogau, Prince Edward, Prysor, Vigra, etc. and many more workings
that are well distributed across the area. All these former mines
fall within the Clogau Gold Project.
Despite being an established gold-producing area, the Dolgellau
Gold Belt is considered to be underexplored in terms of the use of
modern exploration methods, such as low detection limit geochemical
soil sampling, close spaced ground geophysical surveys and
drilling. Hence Alba's two-pronged approach of kicking off
exploration of the wider Gold Belt at the same time as formulating
and implementing a programme of works to bring the Clogau Mine
itself back into production.
Exploration Programme
The exploration programme will follow a two-stage approach.
Stage one will involve geochemical soil sampling along lines with
close spaced samples. Samples from various soil depths will be
taken that will allow a range of assaying techniques to be applied.
This will be followed in the second stage by a ground magnetic and
electromagnetic survey to characterise the geophysical signature of
the mineralisation host rocks and controlling structures.
The results of the orientation geochemical and geophysical
surveys completed will be used to assess the most appropriate
exploration techniques on other, prospective areas of the
licence.
3) Greenland Exploration Activities (Thule Black Sands,
Inglefield Land, Amitsoq)
Thule Black Sands and Inglefield Land (North-West Greenland)
In relation to Alba's 100% owned Thule Black Sands ilmenite
project and Inglefield Land multi-commodity project in north-west
Greenland, much of the period was spent devising the field
programme for the current season and then planning the serious
logistical exercise involved in mobilising our field teams to site
in north-west Greenland. Alba's exploration team for the joint
Thule and Inglefield Land field campaigns this summer comprised
personnel covering a wide range of disciplines (including
geologists and environmental consultants) and involved the
chartering of an ex-Danish coastguard vessel and a helicopter for
the duration of the programme.
Post Period End Update - Thule Black Sands
A field programme has been completed across the Thule Black
Sands project involving drilling and mapping and sampling.
Key points:
o Extensive reconnaissance mapping and drilling completed
o Refined zones of interest extend across a total strike length of approximately 10km
o 3 tonnes of bulk samples collected across three material types
o Independent Competent Person site visit completed
o First year's environmental baseline studies completed
Exploration drilling and mapping has been completed across the
Thule Black Sands project across a strike length of approximately
10km. Drilling was completed on a grid with an approximate spacing
of 250m by 100m with a maximum drilled depth of up to 2m, being
constrained by the depth of the permafrost in the area. Drilling
was completed at the SE, Central and NW Targets. Licence scale
reconnaissance and mapping was also completed ahead of the drilling
to assist in the development of a geological model and ore genesis
theory for the Project.
The detailed reconnaissance completed of the NW Target has
established that the section of coastline north of the area drilled
consists largely of Dundas Formation sediments (siltstones and
shales) and not mineral sands and is not therefore of interest for
future exploration. The refined zones of interest within the
licence are primarily those areas which were drilled, which amount
to a total strike length of ilmenite-bearing sands of approximately
10km.
In addition to the drill samples collected, three tonnes of bulk
samples were collected across three different material types for
future metallurgical testwork. An independent Competent Person site
visit was also completed during the field programme. A team of
external environmental specialists also completed the required
first year studies to support a future Environmental Impact
Assessment, including the extensive collection of samples of flora
and fauna. This work is part of the essential groundwork of any
future development plans at the site.
All samples collected from the programme will be dispatched to a
specialist mineral sand laboratory overseas for the determination
of heavy mineral content. The results will be used to develop a
geological model for the project. Composite samples will be created
from the appropriate geological domains and will be used to
determine the mineralogy of the heavy mineral component of the
sand. Following the completion of the laboratory test work, an
independent Competent Person will then commence the necessary work
to assess the generation of a maiden mineral resource estimate for
the project.
Post Period End Update - Inglefield Land
A field campaign has been completed across selected targets at
Inglefield Land with targets being accessed via helicopter from a
base camp at the Four-Finger Lake target. The exploration campaign
was led by Mr Mark Hutchison, a Greenland-based exploration
geologist, supported by Mr Ole Christiansen, a senior Greenlandic
geologist who has extensive and unrivalled experience of the
geology and mineralisation styles at Inglefield Land, not least
from his time leading NunaMinerals, the previous licence holder at
Inglefield Land. Mr Howard Baker, Alba's Technical Director
(Mining), accompanied the team to assist in the sampling operations
along with leading the Thule exploration programme.
A key objective of the exploration campaign is to identify
possible targets for a future drilling campaign.
In summary, samples were collected at the Four-Finger Lake
target which hosts previously identified cobalt, copper and gold
mineralisation. Further samples were taken at Kap Aggaziz which
encompasses the Marble East, Marble Lake and Martome Fjord Targets
with previously identified anomalies of copper, gold, nickel and
cobalt and four samples were taken from the southwest zinc and
cobalt target.
Previous historical results at Four Finger Lake include a
copper-gold (Cu-Au) and copper-lead-zinc-gold (Cu-Pb-Zn-Au) anomaly
from rock chip and soil samples, including 1.8 g/t Au and 0.24%
Cu.
Previous historical results from Kap Aggaziz includes:
- at Martome Fjord - a Cu-Au target with >1% Cu and 1.6 g/t Au from rock chip samples
- at Marble East - a nickel-cobalt (Ni-Co) target with 0.16% Co
and 0.2% Ni from rock chip samples
- at Marble Lake - a strong Cu-Au anomaly from rock chip samples
returning grades >1% Cu and up to 1.7 g/t Au
Malachite copper mineralisation and gossans were observed at Kap
Aggaziz. Gossans are iron-enriched zones which may signify areas of
deeper seated metallic mineralisation, so the presence of multiple
gossans may suggest widespread mineralised targets.
All samples collected are currently being prepared for dispatch
to independent laboratories for assaying.
Following the receipt of the raw assay results, Alba intends to
undertake petrological testwork on samples of interest. This will
be combined with desktop studies utilising satellite imagery and
available geophysical data to complement the geological
understanding of the Project.
Amitsoq Graphite Project (southern Greenland)
Meanwhile, at our 90% owned Amitsoq graphite project in southern
Greenland, which includes the former producing Amitsoq graphite
mine, during the period we reported the geochemical assays on the
samples taken during our 2017 field programme. This included
graphitic carbon content at the new Kalaaq graphite discovery on
the mainland portion of our licence area, averaging 25.62% carbon
with a maximum content of 29% carbon.
In March we announced that the Amitsoq exploration licence had
been renewed to Alba for a further five-year period and that the
Government of Greenland had granted a 12-month moratorium on the
exploration expenditure commitment attaching to the Amitsoq
licence. Further metallurgical test work carried out during this
period confirmed the ability to produce a marketable grade
concentrate from Amitsoq graphite.
4) Limerick (Base Metals, Ireland)
Alba's 100% owned Limerick Project, comprising an exploration
licence in the Limerick Basin in the Republic of Ireland, is
prospective for base metals and is only 10 km away from and part of
the same target unit as the Pallas Green zinc discovery. During the
reporting period, Alba applied to renew the licence for a further
two years, until May 2020, and earlier this month we were pleased
to receive confirmation of licence renewal. We intend to drill one
or more identified targets at Limerick following receipt of the
necessary regulatory approvals.
5) Corporate
During the reporting period, we raised a total of GBP1,550,000
(before expenses) in two share placings. Prior to that, we had last
raised funds in September 2017. The funds raised during this period
were essential in order to ensure that we were in a position to
meet our commitments to the budgeted field programmes at Horse
Hill, Thule and Inglefield Land in particular.
In March, we announced two senior oil and gas appointments. Sue
Corrigan joined as Alba's Technical Consultant - Oil & Gas. Sue
is a geologist and geoscientist with 40 years' industry experience
in both exploration and development geology, including for a number
of years at Tullow Oil. In addition, Feroz Sultan was appointed as
Alba's Special Adviser - Oil & Gas. Feroz has since taken on
the position as Alba's Technical Director - Oil & Gas. He is a
petroleum geologist with over 40 years of diverse experience in the
management, exploration, development and production of oil &
gas. We firmly believe that their expertise will prove invaluable
in guiding us through this important phase in the development of
both the Horse Hill and the Brockham projects, and provide us with
a much-needed internal resource to assess the performance of our
investment in those projects over the current and forthcoming
long-term testing phase.
These appointments, allied to the highly experienced team we
have on the mining side, headed up by Howard Baker, our Technical
Director - Mining, formerly a Principal Consultant at SRK
Consulting, mean that we have a team at Alba which is fit for the
purpose of driving our mining projects and oil & gas
investments forward in the coming months and years.
6) Results for the Period
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP380,358 (2017:
GBP334,972). The basic and diluted loss per share was 0.015p (2017:
0.02p).
7) Outlook
After a significant hiatus at our oil & gas investments in
the Weald Basin, as the operators at both Horse Hill and Brockham
spent much of the past 12 months navigating their way through the
regulatory maze, and as previously announced, we are finally seeing
welcome progress at both sites. At Horse Hill, we are currently in
the middle of a long-term testing programme that should tell us a
great deal about the commercial viability of the project. And we
await the start of flow testing at Brockham, which project already
benefits from a production licence.
As for our mining projects, while we have completed our summer
programmes at both Thule and Inglefield Land in Greenland, we now
turn to the test work phase so that we can assess the results of
those campaigns. And as those field programmes come to an end, so
we have just begun field work at the Clogau Gold Project in north
Wales, the first time in the project's history that systematic
exploration has been carried out over the mine area and the
identified regional targets.
The rest of the year promises to be a busy time for the Company,
as we push our mining projects through the next phase in their
development and oversee what we hope to be the rapid progress of
the onshore oil & gas assets in which we are invested.
George Frangeskides
24 August 2018
Executive Chairman
Glossary
Mesothermal A class of hydrothermal mineral deposits originating
in the earth's interior by deposition of a mineral
mass from hot mineralized aqueous solutions,
circulating at depths of approximately 1,000
m; the solutions are under great pressure and
have temperatures of 300deg-200degC.
Ore genesis Geological evolution and mineralisation controls
theory that have resulted in the zones of elevated
ilmenite concentrations.
Orogenic An orogeny is an event that leads to a large
structural deformation of the Earth's lithosphere
(crust and uppermost mantle) due to the interaction
between plate tectonics.
Petrological Thin section analysis of rock samples to assist
testwork in the understanding of the observed mineralisation.
Turbidite A turbidite is the geologic deposit of a turbidity
current, which is a type of sediment gravity
flow responsible for distributing vast amounts
of clastic sediment into the deep ocean.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
For further information please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 7264 4366
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Yellow Jersey PR (Financial PR/ IR)
Tim Thompson / Henry Wilkinson +44 77 1071 8649
alba@yellowjerseypr.com
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHSED 31 MAY 2018
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 31 ended 31 30 Nov 2017
May 2018 May 2017
Revenue - - -
Cost of sales - - -
Gross loss - - -
Administrative expenses (381,367) (335,320) (649,125)
Impairment of deferred exploration
expenditure - - (569,218)
Operating (loss)/profit (381,367) (335,320) (1,218,343)
Revaluation of investment - - 700,000
(Loss)/profit before tax (381,367) (335,320) (518,343)
---------- ------------- -------------
Taxation - - -
---------- ------------- -------------
(Loss)/profit for the year (381,367) (335,320) (518,343)
---------- ------------- -------------
Attributable to:
Equity holders of the parent (380,358) (334,972) (227,699)
Non-controlling interests (1,009) (348) (290,644)
---------- ------------- -------------
(381,367) (335,320) (518,343)
---------- ------------- -------------
Loss per ordinary share
Basic and diluted (0.015) (0.02) pence (0.012)
pence pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2018
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2017
May 2018 May 2017
Non-current assets
Intangible fixed assets 1,543,177 1,447,780 1,145,336
Investments 4,061,467 2,288,320 3,619,465
Available for sale assets 18,495 56,285 14,335
Total non-current assets 5,623,139 3,792,385 4,779,136
------------ ------------ -------------
Current assets
Trade and other receivables 209,260 36,371 35,276
Cash and cash equivalents 1,151,385 350,280 626,939
------------ ------------ -------------
Total current assets 1,360,645 386,651 662,215
------------ ------------ -------------
Current liabilities
Trade and other payables (202,606) (153,934) (180,014)
Financial liabilities (253,074) (253,074) (253,073)
------------ ------------ -------------
Total current liabilities (455,680) (407,008) (433,087)
------------ ------------ -------------
Net assets 6,528,104 3,772,028 5,008,264
------------ ------------ -------------
Capital and reserves
Called up share capital 3,686,246 2,720,503 3,086,246
Share premium account 5,836,868 3,610,303 4,655,702
Warrant reserve 350,979 246,050 231,969
Retained losses (3,475,478) (3,224,727) (3,095,120)
Merger reserve 200,000 200,000 200,000
Foreign currency reserve 194,716 193,821 193,685
------------ ------------ -------------
Equity attributable to equity
holders of the parent 6,793,331 3,745,950 5,272,482
Non-controlling interests (265,227) 26,078 (264,218)
------------ ------------ -------------
Total equity 6,528,104 3,772,028 5,008,264
------------ ------------ -------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHSED 31 MAY 2018
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2017
May 2018 May 2017
Cash flows from operating activities
Operating loss (381,367) (335,320) (1,218,343)
Consulting fees settled in shares - - 65,000
Share option charge 119,010 119,443 127,695
Provision for impairment (4,160) - 611,168
Foreign exchange revaluation
adjustment 1,030 4,663 4,526
Increase / (decrease) in creditors 22,593 (42,378) 23,702
(Increase)/ decrease in debtors (173,984) (21,110) (20,015)
---------- ---------- -------------
Net cash used in operating activities (416,878) (274,702) (406,267)
---------- ---------- -------------
Cash flows from investing activities
Payments for deferred exploration
expenditure (81,174) (169,784) (356,616)
Investments (442,002) (27,005) (449,049)
---------- ---------- -------------
Net cash used in investing activities (523,176) (196,789) (805,665)
---------- ---------- -------------
Cash flows from financing activities
Proceeds from issue of shares
and warrants 1,552,000 153,431 1,223,431
Cost of issue (87,500) - (62,900)
---------- ---------- -------------
Net cash generated from financing
activities 1,464,500 153,431 1,170,531
---------- ---------- -------------
Net increase in cash and cash
equivalents 524,446 (318,060) (41,401)
Cash and cash equivalents at
beginning of period 626,939 668,340 688,340
---------- ---------- -------------
Cash and cash equivalents at
end of year 1,151,385 350,280 626,939
---------- ---------- -------------
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with International Financial
Reporting Standards ("IFRS"), International Accountant Standards
("IAS") and IFRS Interpretations Committee ("IFRIC")
interpretations as adopted by the European Union. The financial
information set out in this half-yearly report does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The same accounting policies, presentation and methods of
computation are followed in this interim condensed consolidated
report as were applied in the Group's annual financial statements
for the year ended 30 November 2017. The auditor's report on those
financial statements was unqualified and did not contain any
statements under section 498(2) or section 498(3) of the Companies
Act 2006. The auditor's report for the year ended 30 November 2017
did include a paragraph on material uncertainty related as to
whether the Group can raise sufficient funds to continue to develop
the Group's exploration assets.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP380,358 (May 2017:
GBP334,972; November 2017: GBP227,699) by the weighted average
number of shares of 2,458,569,272 (May 2017: 1,863,339,824;
November 2017: 1,949,148,404) in issue during the period. The
diluted loss per share calculation is identical to that used for
basic loss per share as the exercise of warrants would have the
effect of reducing the loss per ordinary share and therefore is not
dilutive under the terms of Financial Reporting Standard 22
"Earnings Per Share".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR FKQDBQBKDFFB
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